Ongoing guidance and monitoring
- Salary exchange saves employers money
- Protected by robust regulations
Enquire about this benefit
- Employers must appreciate that their auto-enrolment duties don’t end once they’ve completed their initial staging process. Indeed, the eligibility of employees is assessed every time that payroll is run, ‘re-enrolment’ is required every three years, and regular market reviews carried out by a specialist intermediary are necessary to ensure the scheme remains compliant and competitive
- Regulations are subject to frequent change, and the choice of different pension schemes available is ever increasing
- Market reviews, which can be conducted at any time, can be particularly important for reducing annual management charges — which can now be far lower than was possible when auto-enrolment first occurred
- They can also include benchmarking guidance, which can show the typical contribution levels paid in a company’s industry sector, and can provide advice on effectively communicating the pension scheme benefits to employees
- Additionally, it is essential that specialist intermediaries audit current compliant arrangements, for which employers have often done only the basic minimum
- An intermediary can also save employers money by implementing salary exchange and Enjoy Benefits work with a specialist intermediary who can help with all of the above
- Virtually all employees aged over 22 and earning over £10,000 a year must be enrolled into a pension scheme at the start of their employment
- A major attraction is the ability to receive tax relief from the government at their highest rate of Income Tax
- Employees are also protected by robust regulations. For example, annual management charges on funds are capped at 0.75%, and the suitability of pension schemes and their default funds are subject to regular governance reports
- Our partner can provide benchmarking guidance, which can show the typical contribution levels paid in a company’s industry sector, and can provide advice on effectively communicating the pension scheme benefits to employees
- Our specialist intermediaries audit current compliant arrangements, for which employers have often done only the basic minimum
- Our intermediary can also save employers money by implementing salary exchange. The approach, which involves employees giving up entitlement to a proportion of salary in exchange for pension contributions, reduces their tax and NI burdens and usually also results in lower NI contributions for employers
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